AUTO1 GROUP (AG1) Q4 2025 earnings summary

Executive summary

• Achieved record-breaking 2025 results with 842,271 units sold, up 22.1% year-over-year, and revenue of EUR 8.17 billion, up 30.3% year-over-year, with adjusted EBITDA up 80.8% to EUR 197.5 million and margin improving to 2.4%.

• Vertically integrated, AI-enabled business model and pricing engine drove operational leverage, network effects, and market share gains, reaching 3.1% in Europe, a 50 basis point increase.

• Both Merchant and Retail segments set new records in units sold, gross profit, and gross profit per unit, with Autohero surpassing 100,000 units sold.

• Expanded pan-European logistics and sourcing network, adding 178 branches (+32.5% YoY) and increasing cars sold with transport services by 29%.

• Scaled proprietary AI-powered damage detection technology to five major production centers, improving inspection efficiency.

Financial highlights

• Group gross profit rose 36.7% year-over-year to EUR 990.6 million; gross profit per unit increased 11.7% to EUR 1,172.

• Adjusted EBITDA margin improved by 70 basis points to 2.4%, the highest in company history.

• Average selling price increased 7% year-over-year, driven by a higher share of Autohero units and a shift to newer vehicles.

• No corporate debt; cash levels stable at EUR 600–613 million and inventory at EUR 697 million at year-end.

• Opex pre SDI rose 28.9% to EUR 793.1 million, with marketing expenses up 39% and employee costs up 26.2%.

Outlook and guidance

• 2026 guidance: 940,000–1,000,000 group units, EUR 1.1–1.2 billion gross profit, and EUR 250–275 million adjusted EBITDA.

• Merchant units expected at 815,000–865,000; Retail (Autohero) units at 125,000–135,000.

• EBITDA growth expected to outpace unit growth, with further operating leverage anticipated.

• CapEx to remain moderate at 25 basis points of revenue; positive trading cash flows expected to continue.

• Long-term market share target of 10% and adjusted EBITDA margin target of 5–9%.